Which of the Following Best Defines an Asset

question 52

Multiple Choice

Which of the following best defines an asset?

• A)Something with physical form that is valued at cost in the accounting records.
• B)An economic resource owned by a business and expected to benefit future operations.
• C)An economic resource representing cash or the right to receive cash in the near future.
• D)Something owned by a business that has a ready market value.

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Definitions:

Price Ceiling

a legally imposed maximum price on goods or services, above which they may not be sold to prevent market prices from rising too high.

Price Floor

A government or regulatory-imposed price control that sets the minimum price at which a good can be sold, often to protect producers or encourage certain activities.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare programs.

Incidence

The analysis of the distributional effect of a tax or policy on different groups, focusing on who bears the cost.